Seabreeze, in Ocean Road, South Shields, has received a three-star rating from Visit Britain.

It is the first time the eight-bedroom property – one of two guest houses owned by Ocean Hotels – has been rated since it opened two years ago after extensive refurbishment.

Bosses now have their eye on four stars – and a three-star rating for neighbouring Seaways, which is also being renovated.

Just six staff work between the two properties, and assistant manager Colin Richardson said it has been a whole team effort.

"Seabreeze was acquired in July 2006," he said. "It needed some refurbishment, so that got done, and since then it has gone from strength to strength".

The guesthouse was awarded three stars after a visit from a 'mystery shopper', who revealed herself at breakfast after her one-night stay, which was booked as a regular customer.

Mr Richardson said: "She said our hospitality was four star, our service was four star and our cleanliness was four star.

"We are about halfway through another refurbishment and she was staying in one of the rooms that had been redecorated.

"She said if all of the rooms are done to that standard, we will be four star, so we are pushing for that."

It is understood there is only one other four-star guesthouse in Ocean Road, and only two others are advertised on the borough's tourism website.

The guest house offers long-term accommodation for contractors working in the area and aims to provide a home from home.

Mr Richardson hopes the three-star rating will help secure custom from larger companies and it already has Siemens and Filtrona under its belt.

"We are constantly looking to provide new services for them and update existing ones," he said. "We have got wi-fi broadband for business people coming up."